On June 4, 2024, the cryptocurrency exchange Bybit released its latest report: "Beyond the Hype: The Reality of Institutional Investors' Investment in MemeCoins."
The report analyzes institutional and retail participation in the memecoin market, providing insights for investors and newcomers. The report uses first-hand data and trends from the Bybit platform to explore the memecoin landscape in 2024. The full report is now online.
Institutional memecoin holdings tripled
One of the most striking findings of the report is the significant increase in institutional investors’ memecoin holdings. From February to March 2024, institutional investors’ memecoin spot holdings soared 226% from $62.5 million to $204.8 million, highlighting investors’ strong interest in the memecoin market. In the full report, readers can learn more about the significance and implications of this trend for future memecoin investment.
Perpetual contract trading volume is huge
In the first quarter of 2024, institutions traded a staggering $186.6 billion in memecoin perpetual contracts. Although institutions have been cautious about spot positions, their extremely aggressive behavior in perpetual contract trading shows that institutions are highly involved in the volatile memecoin market. Readers can learn more about how these transactions affect memecoin and overall cryptocurrency investment in the full report.
The flexibility and resilience of retail investors
Retail investors are often jokingly called "dumb money", but the report found that retail investors are highly adaptable. From February to April 2024, retail investors' memecoin holdings soared 478% to a peak of $567 million, and then fell to $371 million. This "dynamic adjustment" coincides with the strategic shift of institutions, proving that retail investors are highly sensitive to the market and have the ability to adapt.
More insights and details
Eugene Cheung, Head of Institutional at Bybit, said: “This Beyond the Hype report reflects that both institutions and retail investors are actively taking advantage of the opportunities brought by the memecoin market. The strategic flexibility of institutions and the dynamic management of retail investors reflect the maturation of both parties’ understanding and participation in this asset class. We welcome everyone to study this report together to better understand market dynamics.”
Click here to download the full report.
About Bybit
Founded in 2018, Bybit is a top 3 cryptocurrency exchange by trading volume with over 30 million users. It offers a professional platform for cryptocurrency investors and traders, including a super-fast matching engine, 24/7 customer service, and multilingual community support. Bybit is a partner of Formula 1 racing team and drivers’ champion Oracle Red Bull Racing. For more information on Bybit, visit Bybit Press.
For more information, please visit: https://www.bybit.com
